Thank you for the screenshot and for giving more details on what you've done. I'm here to guide you on what you'll have to do, yorkiemom2.

Based on your screenshot, it looks like you're making a payment and deposit at the same time. That's the reason why you're seeing duplicate transactions in your bank. You'll have to make sure that when a customer pays an invoice, you'll either have to record that payment to connect it to the invoice to balance your accounts. Otherwise, if you're using QuickBooks Payments to process payments, we'll handle all the accounting for you. Once a customer makes a payment on the invoice, QuickBooks processes the payment and categorizes it into the correct account.

With regards to your bank deposit question, if you're going to use it or not,  this feature serves two functions. If payments are received into the Undeposited Funds account, you can group payments and deposit them as a single record into an account. Second, the ability to record, items that aren't typically captured on invoices or bills, such as assets and loans. In order for you to understand more about the importance of deposits in QuickBooks, check this article for your guide: Bank Deposits In QuickBooks Online.

Also, when you connect your bank and credit card accounts, QuickBooks automatically downloads the latest transactions. It tries to match with transactions you've already entered in QuickBooks. If it can't find a match, it creates a new transaction record for you. For your bank fee, may I know if it showing in your register and bank feed? If so, you can also match them instead.

Also, there are possible reasons why unapplied cash payment appears on QuickBooks. I've provided the reasons below:
 

• A customer prepaid you and you recorded the payment before creating the sales form (invoice or sales receipt).
• You entered payments without matching them to sales forms.

You'll want to run the Open invoice report to match it with the payment transactions. Here's how:

1. Go to the Reports menu.
2. Search and click Open Invoices report.
3. Set the report period, then select Run report.
4. In the Transaction Type column, locate a transaction listed as a Payment.

If the payment transaction matches an open invoice, you can follow the steps below:

1. Select the Payment date to open.
2. Under Outstanding Transactions, tap to check the box for the open invoice.
3. After that, hit Save and close.

If the payment doesn’t match an open invoice, you’ll need to create the transaction. Follow these steps: 

1. Select + New.
2. Under Customers, select Invoice.
3. Fill out the form with the same customer, amount, and date as the payment.
4. Select Save and close.
5. Go back to the Open Invoices report.
6. Find the unapplied payment, then select the date to open.
7. Under Outstanding Transactions, check the open invoice.
8. Select Save and close.
9. Check your Open invoices report to check if there are any more transactions listed as a Payment. If there are, repeat step 2 for each one. Now run your Profit and Loss report again. You should no longer see the Unapplied cash payment income. 

Aside from that, it's also possible that the product or service item on the invoice is mapped to a bank account type, which causes the amount to go into Unapplied Cash Payment Income. If that's the case, you can double-check the account used for the item. Then, make sure to associate them with an income account type. Here's how:

1. Open the invoice. Then, review all the names of the items used.
2. On the home page, go to Sales.
3. Select the Product and services tab.
4. Look for the item and click Edit under the Action column.
5. In the Income account field, change the account to Income account type.
6. Tick the Also update this account in historical transactions.
7. Then, Save and close to reflect the changes.

If both the invoice and payment are listed in unapplied cash income, and if the items are already mapped correctly to the account, you can create identical entries for the payment. Here's how: 

1. Go to the +New button.
2. Select Invoice under Customers.
3. Fill out the form with the same customer, amount, and date as the payment.
4. Select Save and Close.
5. Go back to the Open Invoices report.
6. Find the unapplied payment, then select the date to open.
7. Under Outstanding Transactions, check the open invoice.
8. Select Save and Close.

Then, run the Open invoices report to see if there are any more transactions listed as a Payment. You can also run the Profit and Loss report to check if the Unapplied cash payment income is no longer showing. 

To learn more about how the account is used to report cash basis from customer payment Unapplied Cash Payment Income? Furthermore, to learn more about how you can handle reports in QuickBooks Online (QBO), I've added these articles for your reference: 

• Learn how to get the most out of your financial reports.
• Memorize reports in QuickBooks Online.

Please let me know if you have further questions about Unapplied Payment. I'll be around to help you.